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By D. Anderson Willis, Alan A. Campoli, Douglas Mynear, Seth Mittle, J. Steven Gardner

"The diversification of energy sources in the United States has seen some major shifts during the past decade resulting from:• A sudden abundance of low-cost natural gas becoming available through advanced horizontal drilling and hydraulic fracturing techniques.• Incentive-driven policies leading to new development in alternative energy.• The emergence of alternative energy sources proliferated as a result of state and federal level incentives and falling capital costs.Coal was once recognized as the primary low-cost fuel source for the generation of electricity in the United States for most of the last century, providing upward of 50 percent of the total generation capacity during much of that period. However, within the past decade, lower-cost natural gas has overtaken coal as the primary source of fuel used in electricity generation, and alternative sources have steadily grown to now account for approximately 10 percent of the overall mix.West Virginia and Kentucky have not experienced the full breadth of the fuel shift, and, as of 2016, still obtained approximately 80-90 percent of electric power generation from coal. However, as coal plants are retired, there has been a shift toward natural gas for new power plants constructed in the region. The economics of power generation (i.e., lowcost fuel source) has typically been the major factor in determining shifts from one fuel source or technology to another. However, governmental energy policies and incentives have more recently been used to promote the development of new alternative technologies such as wind and solar energy growth to diversify the energy mix. The implementation of these incentives has provided some needed traction and resulted in driving the cost of manufacturing and installation of these new wind and solar systems downward to be more cost competitive with conventional fossil-fueled power sources. Future shifts in the generation capacity by fuel type will also be inevitable and impossible to project accurately as policies change and innovative technologies evolve. Determining factors may include the expiration of current incentives, decreasing capital costs, future environmental regulations, evolution of energy storage systems, technical challenges associated with increasing intermittent sources of generation and the development of unforeseen technologies. West Virginia and Kentucky have been among the least solar friendly states, ranking 44th and 48th of the 50 states (Fig. 1 for WV). The ranking of other coal producing states are similarly low:• Ohio 20• Pennsylvania 21• Virginia 38• West Virginia 44• Wyoming 45• Kentucky 48• Alabama 50"

Jun 1, 2019

By Pat McCarran

WHEN this Government was founded, the framers of the Constitution wrote into that instrument a provision that Congress should "coin money and fix the value thereof;" and the Constitution prohibits making anything but "gold and silver" lawful money. So silver is written into our basic law. Shortly after President Washington took office in 1789 the Congress passed the first Mint Act, setting up the U. S. Mint. In that Act, signed by President Washington on April 2, 1792, the weight of the American dollar was fixed, and it was provided how much silver should be contained in a silver dollar and how much gold should be contained in a gold dollar. It was decided that 371 1/4 grains of pure silver was to be the standard dollar of America. That standard with respect to the pure silver content of the dollar has never changed.

Jan 1, 1947

By C Fountain

Australian mining and engineering companies have increasingly been investing in the mining industry in Brazil. It is a country of enormous mineral and agricultural wealth, with a well-established mining sector. Some Brazilian mining companies and personnel have been journeying in the opposite direction. There are significant differences in the approaches to engineering between the Australian and Brazilian industries that can cause confusion for companies operating in the other country. These range from differing expectations during the various stages of feasibility studies to style of plant and contracting strategies during the construction phase of projects. Some of the differences are driven by tax regimes, labour costs, or different settlement patterns. Others are the result of different histories and pressures on the industries in the two nations.This paper describes some of the differences in approach found in the two countries and some of the reasons for them.

Aug 8, 2011

By John Paul Gries

This Bureau of Mines study outlines the history of 11 major metal ore deposits or districts that are relatively new discoveries. The oldest operation is the White Pine mine, where major exploration was initiated in 1929. Discovery (delineation of ore bodies) dates range from 1948 to 1976. All but two of the deposits, Quartz Hill in Alaska and Flambeau in Wisconsin, are or shortly will be in major production.

Jan 1, 1979

South Africa remains the largest global producer of gold, accounting for 11.3 per cent of total world mine production, which amounted to 2520.2 t in 2005. The benefits and disadvantages associated with hedging practices in general, and among South African gold producers is examined. The wide variety and unique nature of risks faced by the mining industries provide a strong case for hedging. Only the principles of hedging, such as selling ounces of gold in the ground at a pre-agreed price for delivery at a future date as a cost-effective mechanism for price risk management, is discussed. Progressive and cumulative increases in the volume of forward sales in the major producing countries are considered by many to be the cause of the declining gold price over the past decade. In spite of negative publicity, forward selling continued as an industry-wide practice until recently (2002) when the global hedge book contracted by 352 t; contraction amounted to 158.6 t in first quarter of 2006. The objectives and benefits of hedging include continuity and stability of cash flows, stability in price achieved, reduction of frictional costs, and creating an effective management tool. The importance of a defined hedging strategy in reducing uncertainty about the hedging objectives is essential to a successful hedging policy. Historical patterns in hedging revenues at an industry level indicate five distinct periods during which the fortunes of hedgers have fluctuated. Finally, since 2001 the rising gold price and reduced price volatility through the consolidation in the global price means that the need to stabilize revenue flows is less urgent. This has meant that hedging is becoming progressively less important for the mining industry at large.

Jan 1, 2007

This report on the Venezuelan coal industry is the seventh in a series of studies on coal exporting countries requested by the House Appropriations Committee, The committee asked that the basic differences in mining costs for U.S, and foreign mines be identified, especially those costs incurred in complying with health, safety, and environmental regulations.1 Basic costs in extracting raw coal are analyzed in this report for surface operations, This report also provides a limited analysis of the relative market competitiveness of selected Venezuelan and U,S. steam coal mines in three electric utility markets: New England and the east coast of Florida in the United States, and western Europe. Although some Venezuelan coal has coking characteristics, all coal-producing regions of Venezuela sell coal in steam markets.

Jan 1, 1994

By K. M. Mayhew, G. D. Barr, T. M. McCoy, C. T. Knilans

"Teck Resources Limited (“Teck”) has developed and extensively tested on a continuous basis the CESL Technology hydrometallurgical process for treating copper and nickel sulphide concentrates, including bulk copper-nickel concentrates. Copper, nickel and cobalt are leached efficiently into solution, utilizing CESL process conditions. Total precious metals including gold, silver, platinum and palladium are recovered from the residue stream via sulphur flotation. This paper describes the CESL Technology testwork on a bulk copper-nickel concentrate derived from Twin Metals Minnesota?s (TMM) deposits within the Duluth complex and evaluates the economic benefits (increased cash flow, increased revenue certainty) and investment criteria (capital cost, payback and cash flow) of incorporating CESL Technology into the staged development of TMM?s deposits.INTRODUCTION Mineral Processing and the Role of Hydromet in the Duluth Complex The Duluth Complex in northern Minnesota, United States (US), represents one of the largest undeveloped accumulations of copper, nickel, gold, and platinum group metals (PGMs) in the world, ranking second in copper and PMs and third in accumulation of nickel. The figure below identifies some of the larger known deposits within the Complex (see Figure 1). Copper, nickel, PM and PGM mineralization within the Duluth Complex is hosted by mafic to ultramafic intrusive rocks that are part of the overall intrusive complex.One of the mineral processing challenges of Cu-Ni-PM-PGM deposits in this Complex is the complicated, polymetallic nature of the mineralization1: copper occurs primarily as chalcopyrite and cubanite with minor occurrence of talnakhite; nickel occurs as pentlandite and refractory nickel oxide/silicates; iron sulphides are present as both pyrrhotite and troilite; and PMs/PGMs occur in both the sulphide matrix as well as discrete minerals. An additional challenge for the Duluth Complex is the ratio between copper and nickel; in most of the identified deposits, copper grade is three to four times greater than the nickel grade, which precludes the production of a simple bulk concentrate due to the lack of a traditional smelting market for a bulk concentrate of this character."

Jan 1, 2017

By Primak. George J.

"In the development of a new product as well as during its introduction on the market, it is very important to give due consideration to problems involving patents, licenses and trade marks. At the very beginning of the research and development program, it is obviously essential to ascertain, through a suitable patent search, that the product in question will not infringe any patents which are still in force. Then, a possibility of achieving one's own patent or proprietary position on the product or the process of its manufacture should be carefully explored. Licensing arrangements that one may reach with respect to patents and know-how covering such new product may, in the final analysis, determine its over-all success or failure. If one can count on licensing revenues or some favourable cross-licensing arrangements with respect to a newly developed product, this may go a long way to achieving profitability and success. The selection of a good trade mark is probably one of the most important acts that one has to perform once the product is developed, as customers will identify the new product by such a trade mark. In many instances, successful marketing and widespread acceptance of a product are largely due to its appealing name or trade mark, accompanied by proper promotion and advertising. Once the trade mark has been adopted, it should be registered in the Trade Marks Office to provide the protection afforded by federal statute. If the product is to be manufactured, sold or licensed in some other countries, similar considerations should be made with regard to each such country."

Jan 1, 1973

By A. B. Parsons

AT the outset, the authors of this paper desire to file a disclaimer and an, explanation. They have no inside information from occult sources; neither of them feigns clairvoyant powers in the slightest degree. It is true that they have indicated on be graphs an approximate trend for the consumption of seven important mineral commodities up to the year 1954. At best this is a risky business; the figures do not pretend to be any- thing more than reasoned conjectures that are predicated on an attempt to evaluate some of the more obvious of the many factors that are likely to have a bearing on the future.

Jan 1, 1937

By Keith L. Harris

Buoyed primarily by growing consumer spending, the economy rebounded from a weak second quarter. According to preliminary estimates released by the Department of Commerce, real gross national product (GNP) grew $2 1.9 billion during the third quarter, producing a seasonally adjusted annual growth rate of 2.4%, compared with a rate of 0.6% in the second quarter of 1986 and 4.1% for the third quarter of 1985 (table 1). Third-quarter real personal consumption expenditures and Government purchases of goods and services rose $42 billion and $7 billion, respectively, but those gains were partially offset by the continuing decline of gross private domestic investment, off $16 billion, and the growing trade deficit, up $11 billion. Three quarters of the growth in consumer spending occurred in the durable goods sector as consumers responded to discounted financing offered by automobile manufacturers attempting to lower inventories of 1986 vehicles, Increased purchases of other durable goods, such as furniture and home furnishings, also contributed to the strength of the durable goods sector. The success of the automobile inventory reduction program as well as weak factory output led to a $20 billion decline in inventory growth. Investment for housing and producers' durable equipment expanded, however, and mitigated some of the impact of slower inventory depending on gross private domestic investment, Capital spending for nonresidential structures declined for the third consecutive quarter. The declining capital spending and the growing trade deficit continued to be significant and interrelated problems for the economy. Real capital spending for new plants and equipment during 1986 is expected to decline 2.5% after rising 8.7% in 1985 and 15.8% in 1984 (table 2). It is likely that capital expenditures bottomed out in the second quarter and that they will expand in the third and fourth quarters. The first-half decline was partially attributed to uncertainty arising from the pending tax- overhaul bill. Furthermore, there is little impetus for corporations to invest in new capacity since factories are operating at less than 80% of capacity (table 3) largely because of the continuing growth of imports. The growth rate of the trade deficit dropped sharply in the third quarter to less than half that of the previous quarter. Low oil prices, declining auto- mobile and steel imports, and increased exports of agricultural goods contributed to this decline. The continued low growth of the economy caused the Federal Reserve System to reduce the discount rate for the fourth time this year (in late August), drop ping it to 5,596, the lowest level in about 9 years. Inflation, as measured by the fixed- weighted GNP price Index, continues to remain low, but rose from the revised second-quarter level of 1.7% to 2.596, mostly because of rising food costs.

Jan 1, 1986

By Keith L. Harris

The economy continued to expand during the second quarter, but at a much slower pace than expected. According to latest estimates released by the Department of Commerce, the real gross national product (GNP) grew at a seasonally adjusted annual rate of 0.6% compared with a revised growth rate of 3.8%2 for the first quarter of 1986 and 2.3% for the second quarter of 1985 (table 1). The strong growth of personal consumption expenditures, Government purchases of goods and services, and residential investment was moderated by the growing trade deficit, declining investment in business inventories, and the continuing lag in nonresidential investment. Much of the decreased capital spending for the nonresidential sector for the first and second quarters resulted from reduced petroleum exploration and drilling in response to low petroleum prices. Capital spending and trade continue to be areas of weakness for the economy. Real new plant and equipment expenditures for 1986 are estimated to be 1.3% below those of 1985 (table 2). Real net exports of goods and services decreased $24.6 billion, as exports declined 5.6% and imports grew 16.5%. About two-thirds of the $19.3 billion increase in imports was in petroleum and petroleum products, which, because of their lower prices, should help the economy in the future. In response to the sluggishness of the economy, the Federal Reserve System reduced its discount rate from 6.5% to 6% in early July. Inflation, as measured by the fixed-weighted GNP price index, declined from a revised 2.5% in the first quarter to 1.9% in the second quarter because of significantly lower energy prices.

Jan 1, 1986

Real gross national product increased at a larger-than- expected annual rate of 8.3 percent in the first quarter of 1984, with both consumption and investment spending increasing significantly in real terms (table 1). Residential and nonresidential fixed investment increased at annual rates of 25.7 and 14.6 percent during the first quarter of 1984, and investment in nonresidential structures, which declined in 1983, also increased during the first quarter of 1984, nearly attaining its 1982 level. The annual level of personal savings increased $27.7 billion, while the personal savings rate (the ratio of personal savings to disposable income) increased to 5.8 percent during the first quarter. The increase in the personal savings rate comes as welcome news to analysts concerned over the flow of loanable funds to the private sector and the impact on interest rates in 1984 of increased private and Government demands. U.S. Minerals Industry Performance A major upswing in the performance of the metal mining sector occurred during the first quarter of 1984, with production increasing almost 11.2 percent from January to March, The recovery of the metal sector is also reflected in the performance of primary metal industry profits, which were positive during fourth quarter 1983 following seven consecutive quarterly losses (table 1). Two thousand nine hundred more metal mining production workers were employed in February 1984 than in February 1983.

Jan 1, 1984

By R. D. Rosenkranz

The Bureau of Mines has investigated the availability of copper from 272 deposits in market economy countries. The deposits studied have demonstrated resources totaling 413 million metric tons of contained copper and account for more than 90 pct of the reserve base for market economy countries. Using data gathered as part of its Minerals Availability Program, the Bureau performed geologic, engineering, and economic evaluations in order to determine the copper production potential of each deposit. At the 1981 copper market price of $0.85/lb, the deposits studied could economically produce an estimated 88 million metric tons of copper (allowing for profit computed at a 15-pct rate of return), primarily from mines operating at the time of the study (1981). At this price, producing mines in market economy countries could economically produce only 2.1 million metric tons of refined copper per year. However, actual 1981 production was 6.2 million metric tons, indicating that many mines continued to operate even though they were unable to cover all production costs. For U.S. producing mines, the estimated average cost of production per pound (including profit at a 15-pct rate of return) was $0.15 higher than the average cost in other market economy countries.

Jan 1, 1983

By R. H. Lien

The Bureau of Mines investigated a roast-leach process for recovering a marketable lithium product from a montmorillonite-type clay deposit located on the Nevada-Oregon border. The clay sample treated in the investigation contained 0.6 wt pct Li. The lithium recovery process consisted of several unit operations. The lithium silicate compounds in the clay were converted to Li2SO4 by roasting a pelletized mixture of clay, limestone, and gypsum at 900° C in a direct-gas-fired rotary roaster. Water--leaching the calcine at 40 pct solids extracted the Li2SO4. Lithium recovery from the leach solution involved concentrating the solution by evaporation, adding Na2CO3 to the concentrated solution to precipitate Li2CO3 , and filtering the slurry to obtain the product. The product filtrate was recycled to the evaporator following a crystallization step. About 80 pct of the lithium in the clay was recovered as 99-pct-pure Li2CO3. Process operating costs were estimated at $2.12/lb Li2CO3 produced; the current Li2CO3 selling price is $1.48/lb. Raw materials. accounted for 30 pct of the total operating cost.

Jan 1, 1985

By A. G. Yapo, T. W. Camm

"All-in sustaining cost is a metric used by mining companies to reflect the cost of gold mining in a consistent format useful to both investors and mining professionals. Cost reporting focused on the direct cost of mining and processing ore was summarized in the non-GAAP cash cost developed by the Gold Institute in 1996. In 2013, a group of mining companies, working with the World Gold Council, developed a more inclusive approach to reporting costs designed to solve the dilemma of showing a more comprehensive reflection of recurring costs involved in producing gold, without discouraging investors. INTRODUCTION Mining today plays a key role in the development of our civilization as a source of essential raw material and provider of essential fuels, producer of jobs, and a factor in support of the international balance of monetary payment (Camm, 2014). Professionals in mining locate, develop, design and manage ore deposits in an environmentally safe and profitable manner. As mineral deposits become increasingly scarce, new challenges face the industry. A current trend is to an increased emphasis on underground mining techniques for deeper deposits. Operations are safer today than before as companies understand better their work environment and the importance of mining responsibly. A continual challenge for the industry is accurately reflecting the costs and selling price of ore. An enduring characteristic of mining is the situation where the market typically determines the price of a commodity; the main control a company has on the bottom line is to control the cost of production. An attempt to bring light and clarity on the cost of their business will give a better idea to investors on the true profitability of the mining business. Gold producers face this struggle to accurately reflect the cost of production while also seeking to attract the interest of the investment community (Hill, 2013). In order to have a consistent format to report on their production costs, leading gold producers through their alliance inside the World Gold Council (WGC), worked on the adoption of a new cost framework: the All-in Sustaining Cost (AISC) and All-in Cost (AIC). Since 1996, the traditional cash cost reporting has focused only on the mining and processing costs incurred in mining an ounce of gold, which included the costs of goods sold (labor, energy, and consumables costs) and royalties (Table 1). But cash cost reporting ignores many important aspects, like sustaining capital, general and administrative expenses, and site rehabilitation at the end of the mine life (Whelan, 2013). The cash cost was used to attract many investors into the business. In fact the high gross margin (sales minus cash costs) has been promoted the past decades by the industry instead of the net or operating margin. As a result, even when the gold price was high, nearly $1900 per ounce in August 2011, gold producers were not reporting excessive profits in their cash flow / income statements, to the disappointment and incomprehension of investors (Milstead, 2014). The truth was simply that the other costs omitted in the traditional cash cost were reducing the apparent profits."

Jan 1, 2017

By Raymond W. Peterson

The practice of Countertrade and all of its variations has increased dramatically during the last five years in great part due to the worsening world economic situation and the Third World's increasing debt problems. Conventional wisdom has held that the goods finding their way into countertrade will tend to be manufactured goods of ever increasing value added. It is my contention that this has not been the case. The continued depression of most metals and minerals prices has conspired to keep a great number of metals and raw materials in the forefront of countertrade negotiations. The concept that if a country needs hard currency it will simply sell metals into world markets for cash has been significantly modified by countertrade which encourages subsidies for raw materials which are in turn funded by higher prices for the manufactured goods which the country must import. Countertrade is a term that is relatively new to most of us who have been involved in the international trade of metals and minerals, but it is one that we will continue to hear more of in the future. Countertrade as it is generally known today had its beginnings after the Second World War in Eastern Europe. As the shattered economies of Europe struggled to right themselves, a "cashless" system of trade developed. This system included such ancient concepts as barter as well as more modern ones like bilateral clearing agreements. For over 30 years countertrade was confined mainly to the COMECON nations and their various trade protocols with Third World nations. If metals and minerals were involved, there was little disruption of world markets by such examples as Cuba shipping ferronickel and sugar cane to the U.S.S.R. for a host of manufactured goods and oil. As the world's economy began to slow in the late 70's and the debt crisis began in earnest in the early 801s, this all began to change. As more and more nations which had previously been almost totally dependent upon their mineral wealth over-extended themselves in an attempt to industralize, they concurrently found their income from minerals falling, due to the decreased demand and subsequently lower prices available in the marketplace. At first these nations attempted to balance their payments by promoting the sales of their high value-added manufactured goods. We have all heard numerous examples of U.S. companies going to sell their high technology products in Rumania or Yugoslavia and being confronted with counterpurchase requirements for machine tools, shoes or drill bits. When faced with these demands, a number of companies chose not to sell into those markets while others merrily signed up the obligations without much intent to carry them out. The Performance Bonds required were generally minimal, especially when considered in light of the high margin inherent in high tech items; and the penalty clauses were equally small or nonexistent. A third group of companies actually tried to buy the machine tools or drill bits either for their own internal use or resale but found that due to poor quality and high prices, they were faced with a difficult if not impossible task. This is not to say that no one was able to fulfill a countertrade requirement, but the success ratio on these transactions was incredibly low. This was one of the major contributing factors to the reputation that countertrade has gained as a discipline ... "that it is mostly talk and very little action." As this situation slowly evolved, both the countries imposing the countertrade obligation and the exporters assuming the obligation began to realize that something

Jan 1, 1986

By H. A. Wheeler

IT may surprise some of our members to learn, among the industries based on the mineral resources of the United States that of clay now ranks third, being exceeded in value of product only by pig-iron and coal. The present annual value of clay-products exceeds the value of the outputs of gold and silver, and also exceeds the combined values of copper, lead, zinc, aluminum, mercury, antimony and nickel. These facts are shown in Table I. which gives the statistics for the year 1902

Jan 1, 1905

By W. L. Honnold

AS BOTH South Africa and diamond mining are unfamiliar subjects it seems best that on such an occasion as this I should endeavor to reflect the atmosphere of the place and to picture the mines from an industrial rather than from a technical standpoint and, because of long absence, my remarks must necessarily be sketchy and in some particulars not up to date. The preferable route to South Africa is via England, direct steamers from America being inferior as to service and effecting no saving of time. The newer boats are of about 20,000 tons capacity and very comfortable. Seventeen days are required for the voyage and only one stop is made-that at the island of Madiera, three days out. Between Southampton, the port of departure, and Madiera the weather may be warm or cold and the

Jan 1, 1925

By GEORGE ROBERT DE BEQUE

WHAT is wrong with oil shale? The answer is of interest to the public, to the oil refiner, and to the engineer. Many people have invested in shale land or shale securities, and others would invest if early development of the industry were certain. In the face of increasing demands for oil products, oil refiners are threatened with inability to maintain present output unless the supply of domestic petroleum is supplemented. Development of the oil shale industry would open a new field for engineering services. The object of this paper is to suggest reasons why there is but one shale plant in operation in the United States, and to discuss the probable time when the business will be firmly established in Colorado. As the Colorado deposits are the richest and largest in the world, ample supply of material is assured, consequently, this discussion will be confined principally to technical problems and economic problems affecting shale development.

Jan 1, 1924

By James R. Finlay

SOMETIMES the American Institute of Mining and Metallurgical Engineers appears to be a strictly technical society, and if so my paper should deal with the technical operations of finding and producing gold. But I have not been engaged in practical gold mining since 1910. What I have been doing mainly for the last 25 years is to try to figure out what the income of a mine-gold, or any other-would be worth to an investor. So I have been in contact with gold mining, in one way or another, for some 42 years. I say that with a purpose. In that time the industry has been through one of its cycles. The value of gold mines is very dif¬ferent at different points in one of these cycles. For this reason the cycle of gold mining is a highly practical study. The cycle of gold is a more or less rhythmical change in its value or purchasing power measured in the grand average of other commodities, which is the same thing as its price. Taking the price of gold in 1897 as a stand¬ard, a dollar at that time declined to 55c. in 1913, to 26.8c. in 1920, and since then it has risen to 47.4c. in 1930 and to about 64c. in 1932. It is worth about 21/ times as much now as it was in 1920, but less than two¬thirds as much as in 1897. When this change is applied to the value of a gold mine still greater differences are evident. The cost of producing gold is of course measured in labor and other commodities, and as that cost goes down the margin of profit measured in the gold itself increases. Thus a mine which might make only 10 per cent profit in 1920 on its gross output may easily make 25 per cent now. The stockholder gets 2 ½ times more gold that is worth 2 1/2 times as much in purchasing power, therefore the real value of his holding has risen by the one factor multiplied by the other, giving him 61/4 times as much goods or services as he had in 1920.

Jan 1, 1933